FAC Explorer

Audit 9175

FY End
2023-09-30
Total Expended
$5.77M
Findings
2
Programs
2
Organization: Casa Montego Ii, Inc. (CA)
Year: 2023 Accepted: 2024-01-02
Auditor: Snd Partners LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
7099 2023-001 - - N
583541 2023-001 - - N

Programs

ALN Program Spent Major Findings
14.239 Home Investment Partnerships Program $1.34M Yes 0
14.157 Supportive Housing for the Elderly $321,803 Yes 0

Contacts

Name Title Type
RTWBF8VJQ196 Jose Sanchez Auditee
5106470700 Courtney Sharp Auditor
No contacts on file

Notes to SEFA

Title: NOTE C – LOAN PROGRAM BALANCES OUTSTANDING Accounting Policies: NOTE A - BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards includes the federal award activity of Casa Montego II, Inc. and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Casa Montego II, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Casa Montego II, Inc. NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported in the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, where certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identify numbers are presented where available. De Minimis Rate Used: N Rate Explanation: Casa Montego II, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Loan balances outstanding as of September 30, 2023 are as follows: Capital Advance Program Mortgage $4,106,400 HOME Investments Partnership Program Loan $1,337,000

Finding Details

Finding 2023-001
Finding # 2023-001 Federal Grantor: U.S. Department of Housing and Urban Development AL # / Program : 14.157 - Supportive Housing for Elderly Type of Finding: Federal Award Finding Finding Resolution Status: Resolved Information on Universe Population Size: N/A Sample size information: N/A Criteria: Capital Advance Program Regulatory Agreement on form HUD-92466-CA paragraph 7. (d) prohibits the 'distribution of income or project assets' to loans from other entities. Statement of Condition: The project made interest payments using project funds from the operating account to the City of Walnut Creek $23,666 and the County of Contra Costa $19,363. Cause: The Owner used project assets from the operating account to make interest payments when HUD approved on form HUD-9250 the use of funds from the Residual Receipts Fund. Effect or Potential Effect: The project is out of compliance with the Capital Advance Program Regulatory Agreement on form HUD-92466-CA. Auditor Non-Compliance Code: H - Unauthorized distribution of project assets Questioned Costs: $43,029 Reporting Views of Responsible Officials: Agree with finding. Context: Note Payable to County of Contra Costa - Annual payments of principal and interest equal to 45% of 75% of available residual receipts, subject to approval from HUD. Note payable to the City of Walnut Creek - Annual payments of principal and interest equal to 55% of 75% of available residual receipts, subject to approval from HUD. Recommendations: We recommend the Owner review controls over the use of project funds. We recommend that the project make approved distributions of residual receipts from the Residual Receipts Fund. Auditor's Summary of the Auditee's Comments on the Findings and Recommendations: The operating account was refunded the $43,029 on 12/7/2023 with funds from the Residual Receipts Funds. Controls have been put in place to prevent the unauthorized distribution of income or project assets. Response Indicator Agree Completion Date 12/7/2023 Response The operating account was refunded the $43,029 on 12/7/2023 with funds from the Residual Receipts Funds. Controls have been put in place to prevent the unauthorized distribution of income or project assets.
Finding 2023-001
Finding # 2023-001 Federal Grantor: U.S. Department of Housing and Urban Development AL # / Program : 14.157 - Supportive Housing for Elderly Type of Finding: Federal Award Finding Finding Resolution Status: Resolved Information on Universe Population Size: N/A Sample size information: N/A Criteria: Capital Advance Program Regulatory Agreement on form HUD-92466-CA paragraph 7. (d) prohibits the 'distribution of income or project assets' to loans from other entities. Statement of Condition: The project made interest payments using project funds from the operating account to the City of Walnut Creek $23,666 and the County of Contra Costa $19,363. Cause: The Owner used project assets from the operating account to make interest payments when HUD approved on form HUD-9250 the use of funds from the Residual Receipts Fund. Effect or Potential Effect: The project is out of compliance with the Capital Advance Program Regulatory Agreement on form HUD-92466-CA. Auditor Non-Compliance Code: H - Unauthorized distribution of project assets Questioned Costs: $43,029 Reporting Views of Responsible Officials: Agree with finding. Context: Note Payable to County of Contra Costa - Annual payments of principal and interest equal to 45% of 75% of available residual receipts, subject to approval from HUD. Note payable to the City of Walnut Creek - Annual payments of principal and interest equal to 55% of 75% of available residual receipts, subject to approval from HUD. Recommendations: We recommend the Owner review controls over the use of project funds. We recommend that the project make approved distributions of residual receipts from the Residual Receipts Fund. Auditor's Summary of the Auditee's Comments on the Findings and Recommendations: The operating account was refunded the $43,029 on 12/7/2023 with funds from the Residual Receipts Funds. Controls have been put in place to prevent the unauthorized distribution of income or project assets. Response Indicator Agree Completion Date 12/7/2023 Response The operating account was refunded the $43,029 on 12/7/2023 with funds from the Residual Receipts Funds. Controls have been put in place to prevent the unauthorized distribution of income or project assets.